Ownership + Controls
15%of exam
Agency + Duties
17%of exam
Valuation + Analysis
14%of exam
Financing
9%of exam
Transfer
8%of exam
DeedsEscrowTitleVestingTax Aspects
Practice + Disclosures
25%of exam
Contracts
12%of exam
ListingsPurchase ContractsContingenciesOptionsAdvanced Fees
Quick Facts
- Exam
- Salesperson
- Agency
- California DRE
- Questions
- 150 multiple choice
- Time
- 3 hours
- Pass
- 70%
- Fee
- $100 exam
- Courses
- 3 courses
- License
- $350
Government PETE
Police, eminent domain, taxation, escheat
ZoningTakingLienNo heirs
Fee vs Leasehold
Fee simple
- Ownership estate
- Indefinite duration
- Transferable title
Leasehold
- Possessory estate
- Limited duration
- No title
Title vs possession
Estates
- Fee simple
- Maximum ownership
- Life estate
- Ends at death
- Remainder
- Future third-party interest
- Reversion
- Returns to grantor
- Leasehold
- Possession without title
- Estate years
- Fixed lease term
- Periodic tenancy
- Renews automatically
Ownership Forms
- Severalty
- One owner
- Tenancy common
- Separate transferable shares
- Joint tenancy
- Survivorship plus unities
- Community property
- Marriage acquisition
- Partnership
- Business ownership
- Corporation
- Entity ownership
- Trust
- Trustee holds title
Land Controls
- Police power
- Zoning control
- Eminent domain
- Public taking
- Taxation
- Government lien power
- Escheat
- No heirs
- CCRs
- Private restrictions
- Easement
- Use another land
- Encroachment
- Unauthorized intrusion
Fiduciary LOAD
Loyalty, obedience, accounting, disclosure
CareConfidentialityHonesty all parties
Agent vs Principal
Agent
- Represents client
- Owes fiduciary duties
- Acts for principal
Principal
- Client party
- Authorizes agency
- Receives loyalty
Representative vs client
Agency Duties
- Loyalty
- Principal first
- Obedience
- Lawful instructions
- Disclosure
- Material facts
- Confidentiality
- Protect secrets
- Accounting
- Handle funds
- Care
- Skillful diligence
- Honesty
- All parties
Seller vs Buyer Agent
Seller agent
- Seller loyalty
- Market property
- Seek best price
Buyer agent
- Buyer loyalty
- Find property
- Negotiate terms
Listing vs purchasing
Agency Relationships
- Seller agent
- Represents seller
- Buyer agent
- Represents buyer
- Dual agent
- Both sides consent
- Subagent
- Agent of agent
- Principal
- Client party
- Customer
- Non-client party
- Ostensible agency
- Appearance creates reliance
Three Approaches
Compare, cost, capitalize income
Sales comparisonCost approachIncome approach
Value Principles
- Market value
- Probable sale price
- Price
- Amount paid
- Cost
- Amount spent
- Substitution
- Value ceiling
- Contribution
- Added value
- Plottage
- Assemblage value gain
- Regression
- Lower neighbors pull
Appraisal Methods
- Sales comparison
- Comparable sales
- Cost approach
- Land plus improvements
- Income approach
- Income capitalized
- GRM
- Price over rent
- Cap rate
- NOI over value
- Depreciation
- Value loss
- CMA
- Broker price analysis
Note vs Trust Deed
Note
- Debt evidence
- Borrower promise
- Personal obligation
Trust deed
- Security instrument
- Property collateral
- Power of sale
Debt vs security
Loan Picker
- Stable payment→Fixed-rate
- Rate can adjust→ARM
- Low down payment→FHA
- Eligible veteran→VA
- CA assistance→CalHFA
- Short-term payoff→Balloon
Financing Tools
- Note
- Debt promise
- Trust deed
- Security instrument
- Mortgage
- Lien instrument
- Beneficiary
- Lender
- Trustor
- Borrower
- Trustee
- Foreclosure power
- Promissory note
- Personal obligation
Loan Types
- Conventional
- Non-government loan
- FHA
- Government insured
- VA
- Veteran guaranteed
- CalHFA
- California assistance
- Fixed-rate
- Stable interest
- ARM
- Adjustable interest
- Balloon
- Large final payment
Grant vs Quitclaim
Grant deed
- Implied promises
- After-acquired title
- Common CA deed
Quitclaim
- No promises
- Transfers any interest
- Cloud clearing
Warranty vs release
Title Picker
- Want warranties→Grant deed
- No warranties→Quitclaim deed
- Public notice→Recording
- Neutral closing→Escrow
- Ownership defect risk→Title insurance
- Joint owner dies→Survivorship
Transfer Docs
- Grant deed
- Implied warranties
- Quitclaim
- No warranties
- Warranty deed
- Express warranties
- Acknowledgment
- Notary recognition
- Recording
- Constructive notice
- Escrow
- Neutral stakeholder
- Title insurance
- Title defect protection
DRE Weights
Practice 25, Agency 17, Ownership 15
Valuation 14Contracts 12Finance 9Transfer 8
TDS vs NHD
TDS
- Property condition
- Seller knowledge
- Residential resale
NHD
- Hazard zones
- Statutory map areas
- Natural risks
Condition vs location
Disclosure Picker
- Residential resale→TDS(Seller condition)
- Hazard zone→NHD(Statutory zones)
- Agent inspection→AVID(Visual facts)
- Pre-1978 housing→Lead disclosure(Federal rule)
- Special tax district→Mello-Roos(Buyer notice)
- Agent represents both→Dual disclosure(Written consent)
- Material defect known→Disclose(Do not hide)
- Death within 3 years→Disclose(Civil Code)
Disclosures
- TDS
- Seller condition disclosure
- NHD
- Hazard zone disclosure
- AVID
- Agent visual inspection
- Lead paint
- Pre-1978 federal
- Mello-Roos
- Special tax district
- Material fact
- Value-affecting fact
- Death
- Three-year disclosure
Practice Rules
- Trust funds
- Client money
- Deposit deadline
- 3 business days
- Commingling
- Mixing funds
- Conversion
- Using client funds
- Unlicensed assistant
- Clerical only
- Broker supervision
- Required control
- Recovery Fund
- Fraud victim payment
Fair Housing
- Federal FHA
- Housing discrimination ban
- Unruh Act
- Business discrimination ban
- FEHA
- California housing rights
- Steering
- Neighborhood channeling
- Blockbusting
- Panic selling
- Redlining
- Area-based denial
- Familial status
- Children protected
Contract Keys
Offer, acceptance, consideration, capacity, legality
WritingConsentPerformance
Open vs Exclusive Right
Open
- Multiple brokers
- Procuring cause paid
- Owner may sell
Exclusive right
- One broker
- Broker always paid
- Strongest listing
Procurer vs protected
Contract Basics
- Offer
- Proposal terms
- Acceptance
- Mirror agreement
- Consideration
- Bargained exchange
- Capacity
- Legal ability
- Legality
- Lawful purpose
- Contingency
- Condition precedent
- Liquidated damages
- Preset remedy
Listing Types
- Open listing
- Procuring broker paid
- Exclusive agency
- Owner sale exception
- Exclusive right
- Broker always paid
- Net listing
- Risky surplus pay
- Option
- Right to buy
- Advanced fee
- Pre-service payment
- Buyer agreement
- Buyer representation
Common Traps
Current time changed
DRE says 3 hours ≠ Not 3h15m
Pass score
Salesperson 70% ≠ Broker 75%
Trust deadline
Deposit within 3 days ≠ Not whenever convenient
Dual agency
Written consent required ≠ Disclosure alone insufficient
Note vs lien
Note creates debt ≠ Trust deed secures
Grant deed warranties
Implied warranties exist ≠ Quitclaim has none
Client vs customer
Client gets loyalty ≠ Customer gets honesty
TDS vs inspection
Seller discloses knowledge ≠ Agent visually inspects
Last Minute
- 1.Practice area is 25%
- 2.Pass requires 70%
- 3.Salesperson exam: 150 questions
- 4.Time limit: 3 hours
- 5.Agency duties: LOAD plus care
- 6.PETE = government rights
- 7.TDS condition; NHD location
- 8.Note debt; deed security
- 9.Grant warrants; quitclaim releases
- 10.Escrow is neutral stakeholder
- 11.Trust funds: 3 business days
- 12.Dual agency needs consent
Buy on Amazon
Take courses on Udemy
Pre-licensing on ColibriSame family resources
Explore More Real Estate Salesperson
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
More From This Family
Videos and articles for deeper review.
Video100+ FREE Real Estate Exam Questions 2026 + AnswersVideo11 States With Full RE License Reciprocity (2026)Video6 TREC Promulgated Forms Explained (2026 Exam Guide)Video7 Proven Study Methods for Certification Exams (2026)Article100+ FREE Real Estate Exam Questions 2026 + Answers10 min readArticle11 States With Full RE License Reciprocity (2026)18 min readArticle6 TREC Promulgated Forms Explained (2026 Exam Guide)11 min readArticle7 Proven Study Methods for Certification Exams (2026)14 min read